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Department Secretary

Hon. ma. esperanza christina garcia frasco.

Philippine Tourism Secretary Christina Garcia Frasco is a former three-term mayor of the Municipality of Liloan in the Province of Cebu before she was catapulted to the executive branch of government when President Ferdinand R. Marcos, Jr. handpicked her to join his Cabinet and lead the Department of Tourism (DOT) in 2022. Born to a family of public servants, her legacy as a local chief executive saw the rise of Liloan as a top model and most resilient municipality in the Philippines. Her outstanding work did not go unnoticed, meriting a Presidential Lingkod Bayan Regional Award for Excellence in Public Service and ranking number 1 among all municipal mayors in Central Visayas. As the youngest member of the Marcos Cabinet, she has consistently been ranked one of the top-performing Secretaries of the Marcos administration, delivering solid outcomes and achievements for the Department.

From back-to-back international accolades for the Philippines to breaching tourism targets, her visionary leadership has propelled the country onto the world stage. Most recently, with the Philippines' election as vice presidency of the UNWTO General Assembly, a position once held by the country more than two decades ago, alongside the chairmanship of the UNWTO Commission for East Asia and the Pacific. As she makes a mark in the tourism industry, she has laid out some of the most groundbreaking innovations yet, leveraging on collaborative and shared governance that leaves no destination and people behind, with the Filipino at the heart of the industry. Lauded by the entire tourism industry, SKAL International recently distinguished her with the prestigious Tourism Good Governance Award. Since her assumption to office, tourism reclaimed its pole position in the Philippine economy as the 2nd top driver of the country's growth and development, employing millions of Filipinos. Their world-renowned brand of warm hospitality has made the world "Love the Philippines," bringing us a step closer to fulfilling the President's vision of transforming the Philippines into a tourism powerhouse in Asia.

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President Duterte's full support for tourism 'very encouraging' -- Puyat

Tourism Secretary Bernadette Romulo-Puyat deemed it reassuring to hear President Rodrigo Duterte urging full support of tourism during his 5th State of the Nation Address on Monday.

In his speech, Duterte enjoined Filipinos to help boost the economy by travelling locally once the necessary protocols are in place.

“In the same manner, the tourism and recreation industries, which are among the hardest hit by the pandemic, count on our full support. While we slowly try to put the fun back in our local travels, the national government agencies and LGUs must harmonize their policies to boost tourism ensuring everyone’s well-being,” he said.

Puyat, who was among Cabinet Secretaries invited to attend the SONA said, “This is a very encouraging development knowing that the DOT has the President’s full support as we further our plans to spur the recovery of the industry through the promotion of local travel."

With no revenue coming in amid massive border restrictions, Puyat has been reiterating the need to boost domestic tourism.

Recent government statistics revealed Philippine tourism has grown to become a significant contributor to the economy, contributing a 12.7 percent share in the country’s gross domestic product (GDP) in 2019, with 10.8 percent coming from domestic tourism.

“What is music to our ears is the promise that the tourism industry can count on the support of not just the DOT, but also the government as a whole ‘to put back the fun in our local travels,’ to borrow the President’s words,” Puyat added.

The tourism chief, who has initiated exploratory talks with various local government units to facilitate the safe and gradual reopening of domestic tourism destinations, also commits to follow the directive of the President in his SONA to "see concerted efforts in protecting the environment" sustained throughout his term, citing the successful rehabilitation of Boracay as an example.

"In reopening domestic tourism, the DOT shall continue to engage the national government agencies, LGUs, and stakeholders to ensure the safety of visitors and communities, and more importantly, in heeding the President's call to keep tourism destinations and sites sustainable in the process," she said.

Puyat has been hosting consultative meetings and dialogues with local tourism stakeholders from some of the country’s premier destinations, such as Boracay and Palawan. She is slated to visit Bohol and Baguio next.

The tourism secretary also welcomed the House’s support for the recovery of the industry.

In his speech during the opening of the 18th Congress' second regular session, House Speaker Alan Peter Cayetano raised the “need to build and retool” industries that have been affected by the pandemic, including tourism.

“The support of the House, other government agencies and tourism stakeholders will be crucial in the implementation of the Tourism Response and Recovery Plan, which will provide timely and substantial measures for the recovery of the industry,” Puyat said.

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Philippines names new tourism secretary

The Philippine Department of Tourism (DoT) welcomes the impending appointment of Christina G Frasco as secretary.

Frasco, who is currently mayor of Liloan, Cebu, will replace Bernadette Romulo-Puyat.

Frasco serves as the spokesperson of vice president-elect Sara Duterte since July 2021. She is also the daughter of Cebu governor Gwendolyn Garcia.

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Department of Tourism

Republic of the Philippines

Key officials.

hon. Maria Esperanza Christina Garcia Frasco

Department secretary.

Maria Esperanza Christina Garcia Frasco (born December 25, 1981) is the current Secretary of the Department of Tourism after being appointed by President Ferdinand “Bongbong” Marcos Jr. in 2022, and the youngest member of the Cabinet so far. She is a lawyer, having graduated from Ateneo Law.

The incoming Secretary of Tourism is the newly-reelected Mayor of Liloan, Cebu. Her transformational leadership has fostered Liloan’s development towards sustainability, livability, and innovation with aggressive infrastructure development and social protection programs earning awards for Liloan as the Top Model Municipality and Most Resilient Municipality in the Philippines. Under her administration, Liloan now has one of the largest educational scholarship programs in the country, with yearround arts, culture, and sports tourism programs. Throughout the challenges of the pandemic and the super typhoon that recently devastated Cebu, she has led Liloan’s recovery and resurgence towards becoming the LGU with the highest growth rate in Cebu. Under her leadership, Liloan has the distinction of being a four-time recipient of the highest audit rating given by the Commission on Audit, and it has received more than 40 good governance awards and citations from local and national award-giving bodies. In 2021, she was awarded the Presidential Lingkod Bayan Regional Award by the Civil Service Commission in its Search for Outstanding Government Workers. She was also ranked the Top Performing Mayor in Central Visayas, ranking number 1 among all Municipal Mayors in the entire Region 7. She is the first woman President of the League of Municipalities of the Philippines Cebu, and the National Vice President of the League of Municipalities. Prior to entering public service, she worked for Romulo Law practicing international arbitration and commercial litigation. She was also a Professor at the University of San Carlos College of Law. She was appointed by Vice President Sara Duterte as her Spokesperson for the 2022 National Elections.

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Sara Duterte spox Christina Frasco to serve as tourism secretary

Ma. Christina Frasco. INQUIRER Visayas file photo

MANILA, Philippines — The spokesperson of Vice President-elect Inday Sara Duterte-Carpio is joining the Cabinet of President-elect Ferdinand “Bongbong” Marcos Jr. as secretary of the Department of Tourism (DOT).

Liloan town mayor and Duterte-Carpio spokesperson Ma. Christina Frasco will succeed current Tourism Secretary Bernadette Romulo-Puyat once Marcos Jr. assumes presidency on June 30.

This was announced by Marcos Jr.’s Press Secretary Trixie Cruz-Angeles on Monday in Mandaluyong City.

Frasco was recently elected as mayor of Liloan town in Cebu. She is the daughter of Cebu province governor Gwendolyn Garcia who backed Marcos Jr.’s presidential bid together with her One Cebu party.

Notably, Marcos Jr. won big in the most vote-rich province in the country after receiving over 1.5 million votes there.

Aside from Frasco, four more members of the Marcos Jr. Cabinet were named on Monday. These are:

* Erwin Tulfo (Secretary of  Department of Social Welfare and Development)

* Amenah Pangandaman (Secretary of Department of Budget and Management)

* Ivan John Enrile Uy (Secretary of Department of Information and Communications)

* Naida Angping (Secretary of Presidential Management Staff)

RELATED STORY:

Erwin Tulfo to serve as DSWD secretary; 4 other Marcos Cabinet members named

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The Tourism Congress of the Philippines (TCP) congratulates Mayor Christina Garcia Frasco on her appointment as the new Secretary of the Department of Tourism. 

TCP President Jose Clemente III declares, “With Secretary-designate Frasco’s extensive experience in local government, and in a prime destination at that, we are confident that she will continue the revival of the country’s tourism industry and guide us through whatever challenges come our way. We certainly welcome her statements regarding the creation of safety nets for the industry as cushion for our tourism stakeholders against future calamities.” 

The TCP looks forward to partnering with Secretary-designate Frasco and the Department of Tourism (DOT) in carrying out the vision and ideals of the industry, as laid out in R.A. 9593, the Tourism Act of 2009. 

The country’s tourism stakeholders continue to pledge a collaborative relationship with the government, as it has proven to be effective in the success of the industry. With Secretary-designate Frasco’s stewardship of the tourism industry, the TCP eagerly anticipates its eventual return to pre-pandemic levels. 

The TCP is the private sector consultative body that assists the government in the development and implementation of tourism policies.  Serving as the voice of the industry on matters of national interest, particularly those affecting the private sector, the TCP is composed of representatives of tourism enterprises all over the country, including former Tourism Secretaries.  It is also responsible for developing a strong and institutionalized partnership between the government, through the DOT, and the private sector.

More information on TCP may be obtained via email from [email protected] or through Viber at +63 966 763 5064

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Today’s front page, Monday, June 10, 2024

Duque: Duterte ordered transfer of ₱47.6-B DOH funds to DBM

• Jovee Marie N. de la Cruz
• June 3, 2024
• 3 minute read

FORMER Health Secretary Francisco Duque III on Monday revealed that former President Rodrigo Roa Duterte directed the controversial transfer of P47.6 billion from the Department of Health (DOH) to the Procurement Service of the Department of Budget and Management (PS-DBM) for purchasing Covid-19 supplies in 2020.

Duque made the statement during an oversight hearing of the House of Representatives’ Committee on Appropriations, which is reviewing the budget performance of the DOH and the Philippine Health Insurance Corp. (PhilHealth).

During the hearing, chaired by Marikina City Rep. Stella Luz Quimbo, House appropriations panel vice chairman, and Rep. France Castro, nominee to the House of the ACT Teachers party-list group, Duque was asked about the origin of the fund transfer.

“As stated earlier by Secretary Duque, a large transfer of P47.6 billion was made during our dates with President Duterte. Is this correct?” Castro enquired.

Duque responded, “Publicly this was made by the President in our meetings in the weekly meeting or talk to the people.”

The Ombudsman recently ordered the filing of graft charges against Duque III and former DBM Undersecretary Christopher Lao over what was described as an “irregular transfer” of DOH funds to PS-DBM for procuring Covid-19 supplies. Additionally, the anti-graft agency found Duque and Lao guilty of grave misconduct, gross neglect of duty, and conduct prejudicial to the service.

During the House hearing, Deputy Majority Leader Janette Garin further inquired about the official instructions behind the fund transfer.

“So I think, Honorable Castro, the answer of Secretary Duque was in a public address by the President…the former President. That surprises me a bit, Madam Chairwoman because there are usually official notices or instructions,” said Garin, who once served as health secretary.

“So was there any instruction, Madam Chairwoman, or who instructed Secretary Duque to initiate the P47.6 billion transfer? It can be answered by the name of the authority who instructed him or the name of the committee or I do not know. If Secretary Duque can respond,” said Garin.

But Duque stood firm, asserting his authority in the matter.

“Madam Chairperson, it is within my authority to effect the fund transfer. I do not deny that,” he added.

However, Garin persisted in seeking clarity, pressing Duque on whether the decision was made unilaterally, “The question is did you unilaterally decide to transfer P47.6 billion to PS-DBM?”

In response, Duque clarified, “No is the answer. I’m just complying with the rules of the PS-DBM. Again, I do not want to belabor the laws that authorize the PS-DBM to procure in a state of public health emergency materials.”

Duque explained that the decision was based on recommendations from the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF), which he also chaired.

“But I would like to reiterate that it is within my authority to effect the transfer because of the public health emergency where there were not enough CSEs [common-use supplies and equipment], PPEs [personal protective equipment], and other Covid pandemic supplies,” Duque added.

“So we wanted just to make sure, Madam Chairperson, that the lives of our people are protected and that the risks are mitigated from our people possibly then at the height of the pandemic that nobody knew about, that would have resulted in the millions of infections and countless deaths of our healthcare workers,” he stressed.

Additionally, Garin criticized the Duterte administration’s management of the Covid-19 pandemic, asserting that it exacerbated the burden on the public.

She pointed out the exorbitant cost of Covid-19 testing, which PhilHealth initially set at P8,150, in contrast to the P2,000 to P2,500 recommended by the World Health Organization (WHO).

Garin also raised serious concerns over the government’s handling of Covid-19 loans, emphasizing the burden on the public and the lack of accountability for the borrowed funds.

It was also learned during the hearing that the government secured a total of US$2.21 billion for the Philippine Covid-19 Emergency Response Project (PCERP) and the Health System Enhancement to Address and Limit Covid-19 (HEAL) in 2021 and 2022.

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Duterte arrives in Russia for official visit

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This is AI generated summarization, which may have errors. For context, always refer to the full article.

MOSCOW, Russia (UPDATED) – Philippine President Rodrigo Duterte touched down in Moscow past 11 pm on Monday evening, May 22   (past 4 am on Tuesday, May 23, Manila time) to begin his 4-day official visit to Russia.

Duterte was given a red carpet welcome, complete with military honors. He was greeted at the tarmac by Russian Deputy Foreign Minister Igor Vladimirovich Morgulov.

OFFICIAL ACTIVITIES

May 23, Tuesday

On his first full day, Tuesday, Duterte has no official events. His schedule sent to media states the entire day will be devoted to “President’s time.” This is likely to give Duterte, who has expressed an aversion for long-haul flights, time to rest before his official activities start.

May 24, Wednesday

On Wednesday, Duterte’s first official activity is a visit to the House of the Government for a bilateral meeting with Russian Prime Minister Dmitry Medvedev. Around lunchtime, he will then lay a wreath at the Tomb of the Unknown Soldier.  

From there, he proceeds to the Moscow State Institute of International Relations where he will be conferred his first honorary doctorate degree as president. He will then give a speech in front of students and faculty of the elite school for diplomats.

In the evening, the President will join a roundtable of Filipino and Russian business leaders. So far, this is the first event with the participation of the contingent of businessmen accompanying him in the visit.  

May 25, Thursday  

On Thursday, his 3rd full day, Duterte and his Cabinet officials will have an expanded bilateral meeting with Russian President Vladimir Putin and his ministers at the Kremlin, former home to the tsars and now the official resident of the Russian President.  

At this time, the two presidents will witness the signing of various deals, including one on defense cooperation .

Duterte and Putin are expected to enter into an even smaller meeting, likely one involving just the two of them. 

This will be the 3rd time Duterte will meet Putin, who he has unabashedly called his “idol.” Their first meeting was in November 2016 during the Asia-Pacific Economic Cooperation (APEC) Summit in Peru. (READ: Duterte on Putin: We’ve become fast friends )

They met again in Beijing when they attended the Belt and Road Forum for International Cooperation hosted by their common friend Chinese President Xi Jinping. In fact, they sat together at the forum’s welcome dinner.

On Thursday evening, the Philippine President will attend the Philippine-Russian business forum at a 5-star hotel. He’ll then speak at a gathering of Filipinos based in Russia and nearby states.

Later that night, he’ll grant a one-on-one interview with Russian TV, a major English-language news channel.

May 26, Friday  

Duterte’s last day in Russia, Friday, will be mostly spent in St Petersburg, where he will be welcomed at a ceremony in one of the city’s historical palaces.

After that, he will visit a military shipyard and then attend, in the evening, his second Philippine-Russia Business Forum.

Later that night, he departs from St Petersburg for Dubai in the United Arab Emirates where he is set to take part in activities.

OFFICIAL DELEGATION

The following Philippine government officials will accompany Duterte in Russia:

• Senate President Aquilino Pimentel III
• Executive Secretary Salvador Medialdea
• Foreign Secretary Alan Peter Cayetano
• Finance Secretary Carlos Dominguez III
• Justice Secretary Vitaliano Aguirre II
• Agriculture Secretary Manny Piñol
• Public Works and Highways Secretary Mark Villar
• Defense Secretary Delfin Lorenzana
• Health Secretary Paulyn Ubial
• Trade and Industry Secretary Ramon Lopez
• Tourism Secretary Wanda Teo
• Transportation Secretary Arthur Tugade
• Science and Technology Secretary Fortunato de la Peña
• Energy Secretary Alfonso Cusi
• Socioeconomic Planning Secretary Ernesto Pernia
• Communications Secretary Martin Andanar
• National Security Adviser Hermogenes Esperon Jr
• Special Assistant to the President Bong Go
• Senator Sherwin Gatchalian

– Rappler.com

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Duterte arrives in Moscow for official visit

President Rodrigo Duterte arrived in Moscow, Russia at 3:25 a.m. (8:25 a.m. PHL time) on Wednesday morning for a five-day official visit.

President Duterte has arrived in Moscow for his five-day official visit to Russia. The plane carrying Duterte and his delegation touched down at the Vnukovo Military Base Airport at 3:25 a.m. (8:25 a.m. Manila time) Wednesday. @gmanews — Virgil Lopez (@virgillopez) October 2, 2019

Duterte's plane landed at the Vnukovo Military Base Airport.

Philippine Ambassador to Russia Carlos Sorreta and Russian Ambassador to the Philippines Igor Khovaev were at the airport to personally welcome him.

This is Duterte's second visit to Russia . Malacañang said he was invited by Russian President Vladimir Putin.

A total of 15 Cabinet members led by Executive Secretary Salvador Medialdea and Foreign Affairs Secretary Teodoro Locsin Jr. joined the presidential delegation as Duterte designated Justice Secretary Menardo Guevarra as officer-in-charge of the national government during the trip.

On Wednesday, Duterte will have separate meetings in Moscow with Russian Prime Minister Dmitry Medvedev and Igor Sechin , head of Russia’s top oil producer Rosneft.

The President will then travel to the resort city of Sochi to speak at the Valdai Discussion Club on Thursday, a first for a Philippine leader.

He will then have a bilateral meeting with Putin on the sidelines of the Valdai forum.

On Friday, Duterte will attend a business forum in Moscw aimed at promoting trade and investment opportunities between the Philippines and Russia.

He will also be conferred an honorary doctorate degree by the Moscow State Institute of International Relations, one of Russia's most prestigious learning institutions. Duterte is expected to give a lecture to Russia's future diplomats.

The President will also visit the Tomb of the Unknown Soldier at the Aleksandrovsky Garden, and will tour the Kremlin Palace and attend a Filipino cultural performance.

Duterte will end his visit on Saturday with a meeting with the Filipino community there.  —KG, GMA News

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Hon. Sara Z. Duterte

Sara Zimmerman Duterte is the Vice President and Secretary of Education in the Philippines. She is popularly known in the Philippines as Inday Sara. The nickname Inday means beloved in the Visayan language. She is the second child of Rodrigo Roa Duterte, the 16th President of the Republic of the Philippines, and Elizabeth Zimmerman Duterte, a former flight attendant and teacher. Sara is the first-ever elected woman and the youngest vice mayor and mayor of Davao City.

Her life is profoundly backdropped by her family’s long history in politics and public service. Her socio-political acumen and leadership skills have been sharpened by the Duterte family’s tradition of working in the government and serving the people. Before politics, Sara had a brief stint as a Court Attorney in the Supreme Court of the Philippines in 2006. She then served as Vice Mayor from 2007 to 2010 and was elected Mayor in 2010.

Although a newcomer in 2007, Sara demonstrated transformational leadership skills among the members of the City Council. Her landmark project while serving as Vice Mayor was ‘Inday Para sa Barangay’, a whole-of-government approach to service every year in each of the 182 barangays of the city. It is now called the Caravan of Government Services when she moved to the City Mayor’s Office. During her term as mayor, the timeless Davao Life is Here brand was created. It propelled Davao City’s image as a desired market and destination for investment and tourism events, including the Meetings, Incentives, Conference, Exhibitions market.

As a neophyte Mayor in 2010, she was appointed as Chairperson of the Regional Development Council (RDC). The RDC under her leadership made notable accomplishments that propelled the region. During her first full year as RDC chairperson, Davao Region’s Gross Regional Domestic Product expanded from 3.9 percent in 2011 to 7.1 percent in 2012.

Under Sara’s leadership, Davao City soared to greater heights and emerged as a premier city in Mindanao. For the short period of 2011 to 2013, Davao City received 36 awards, citations, and recognitions for good governance, business, tourism, health, environment, fiscal management, transparency, among others.

Sara served as a regional officer of the National Movement of Young Legislators in 2007- 2010 and served as officer in the National Executive Board of the League of Cities Philippines in 2010-2013.

In 2013, Sara took a respite from politics, devoting her time as one of the partner lawyers of Carpio & Duterte Lawyers. She passed the Pre-Judicature Program of the Philippine Judicial Academy in preparation for her plans to join the judiciary. In 2014,she was elected to the Board of Governors of the Philippine Red Cross.

In 2016, Sara re-entered local politics and ran for mayor. The centerpiece of her mayoral comeback was called Byaheng Do30, a political agenda guided by Thirty Projects for Ten Priority Sectors: Education, Health, Poverty Alleviation, Infrastructure Development, Solid Waste Management and Environment, Agriculture, Investment and Tourism, Traffic and Transportation Management, Disaster Risk Reduction and Management, and Peace and Order. As a believer of continuity, Sara’s 2019 mayoral reelection bid was anchored on the 2016 platform, but this time called ‘Byaheng Do30 – The Second Trip’.

Sara relentlessly pursued peace and progress in her administration. As a result, she was able to lift Davao City to a stellar national status with 117 awards, citations, and recognitions from March 2017 to December 2021. Davao City is included on the 2021 Top 10 Richest Cities of the Philippines of the Commission on Audit. And in the same year, Davao City was ranked the 4th Most Competitive Highly Urbanized City by the Department of Trade and Industry.

Sara has been recognized both here and abroad for the work that she has done as local chief executive. In 2012, she was one of the 88 nominees to the prestigious World Mayor Awards — and one of the only two Filipino mayor nominees. In 2021, she was selected as the Philippines’ Top Performing Mayor, with a rating of 93 percent, by an independent and non-commissioned survey of the RP-Mission and Development Foundation Inc.

Her advocacies are reflected in the projects dearest to her — the Peace 911 (a local peace initiative), Magnegosyo Ta ‘Day (a livelihood support project), Pagbabago Campaign, and the Kean Gabriel Hotline (an anonymous reporting platform for abused children).

Sara is an adopted member of the Philippine Military Academy Maharlika Class of 1984 and the Philippine National Police Academy Tagapagkalinga Class of 1991. She is a member of the Philippine Coast Guard Auxiliary and the Armed Forces of the Philippines Army Reserve Command. She holds the rank of Colonel and is currently the Assistant Brigade Commander of the 2202nd Ready Reserve Combined Arms Brigade, Philippine Army. She has received several medals, ribbons, badges, and citations for her work in Davao in support of the Armed Forces of the Philippines.

Sara is a Bachelor of Science in Respiratory Therapy graduate from the San Pedro College in Davao City. She received her Juris Doctor degree from the San Sebastian College – Recoletos in the City of Manila. She was presented as one of the 30 Most Outstanding St. Augustine Awardees of San Sebastian in January 2014 and was granted by the San Sebastian College of Law the Distinguished Alumna Award for public service in February 2020. She also received the Distinguished Woman of Service Award from the San Beda College Alumni Association in February 2011. Sara spent four years of law school at the San Beda and her final year in San Sebastian.

Sara is a graduate in 2011 of the twin program of the Armed Forces of the Philippines Command and General Staff College – General Staff Course and the Development Academy of the Philippines – Master of Public Management.

She is married to fellow lawyer Manases Reyes Carpio and they have three children named Shark, Stingray, and Stonefish.

Reference: Office of the Vice President

Duterte ordered transfer of P47.6 billion COVID funds to PS-DBM – Duque

M ANILA, Philippines — It was then-President Rodrigo Duterte who ordered the transfer of P47.6 billion in COVID-19 funds from the Department of Health (DOH) to the Department of Budget and Management (PS-DBM) in 2020.

Former Health Secretary Francisco Duque III admitted this information during the hearing of the House of Representatives committee on appropriations Monday, upon the questioning of ACT Teachers party-list Rep. France Castro.

Based on a Commission on Audit (COA) report, the P47.6-billion COVID-19 fund includes PS-DBM contracts with Pharmally Pharmaceutical Corp. , which was accused of selling overpriced medical supplies such as face masks, face shields, and other equipment used during the pandemic to the government.

Former Health Secretary Francisco Duque III said it was former President Rodrigo Duterte who directed the transfer of P47.6 billion under the Department of Health (DOH) to the Procurement Service of the Department of Budget and Management (PS-DBM) during the height of the pandemic.

“Another question, it was authorized by former President Duterte, right?” Castro asked Duque, referring to the transfer of the funds.

READ: 2021: Pharmally scandal rubs salt on pandemic wounds

“Oho (Yes), in his public pronouncements, the transfer was done because of the public health emergency, which he declared sometime in March [2020],” Duque replied.

Later, during her interpellation, Castro asked Duque again if it was indeed Duterte who directed the fund transfers.

“Sinasabi sa atin ni Secretary Duque sa utos ni dating Presidente Duterte ay nagkaroon ng ganito na transfer ng P47.6B, tama po ba?” Castro asked again.

(Secretary Duque already said that it was the order of former President Dutert to have these transfers worth P47.6 billion, correct?)

“Publicly this was made by the President in our meetings, in the weekly meeting or ‘Talk to the People,’” Duque replied.

“So clear po ‘yan (So that is clear), P47.6 billion to be transferred to PS-DBM, publicly announced by former President Duterte na ma-transfer (for trasnfer),” she added.

In an interview after the House panel’s hearing, Solicitor General Menardo Guevarra – who was Justice Secretary during Duterte’s administration and when the COVID-19 pandemic hit the country in 2020 –said he could not recall Duterte making a public pronouncement about transferring funds to PS-DBM.

Guevarra, however, noted that if the announcement had been made through the media, he may not have known.

“I don’t think it’s referring to a Cabinet meeting because I don’t remember any such Cabinet meeting where the President made that. I was Justice Secretary at the time and I was attending, of course, Cabinet meetings,” said Guevarra, who was present during the discussions of the House appropriations panel Monday.

“But, frankly, I do not recall any Cabinet meeting where a public statement like that was made by the President, unless he made it publicly before the media.  Not before the Cabinet. I’m not too sure though, but that’s my recollection,” he added.

The House committee on appropriations held the hearing as part of its oversight functions to check on the budget performances of the DOH and Philippine Health Insurance Corporation.

In August 2021, the COA found deficiencies in how the DOH managed its P67.32-billion fund to fight the COVID-19 pandemic, adding that it contributed to the challenges that the country faced during the health crisis.

The COA’s annual audit report for DOH in 2020 revealed that the deficiencies are caused by non-compliance with pertinent laws and regulations, which led to missed opportunities for the department primarily tasked with managing the pandemic.

These issues, it said, cast doubt on the regularity of transactions, while keeping much-needed funds at bay and unspent.

READ: COA finds DOH lacking in managing P67.32-B COVID funds

Questions were eventually raised on how the DOH handed over to PS-DBM the responsibility of procuring protective equipment, when the latter’s mandate is to purchase common-use supplies like pens, paper, and other generic equipment.

PS-DBM was also quizzed at the Senate as to why it gave a contract to Pharmally, despite the company having a small paid-up capital of P625,000.

Just last month, the Office of the Ombudsman denied former PS-DBM head Lloyd Christopher Lao’s plea as he is facing various complaints for his involvement in the Pharmally controversy.

In an 18-page order signed by Ombudsman Samuel Martires on May 2, Lao contested the recommendation of graft charges against him and others, saying Pharmally was picked as the protective equipment supplier during the pandemic because other companies had a smaller paid-up capital.

The Ombudsman, however, noted that Section 8 of Republic Act No. 1991 or the Foreign Investment Act of 1991, specifically states that “small and medium-sized domestic market enterprises with paid-in equity capital less than the equivalent of US$500,000 are reserved for Philippine nationals.

Since Pharmally’s paid-up capital amounts to only P625,000, the corporation should be managed by Filipinos only. The Ombudsman reminded Lao that several officials of Pharmally – particularly the firm’s head, Huang Tzu Yen, and a certain Lin Weixiong – are foreigners.

READ: Ombudsman denies appeal of ex-DBM exec Lao on Pharmally case

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